The U.S. attorney for Manhattan filed a 16-page criminal complaint against Norman Hsu today. You can read it here
Hsu is charged with defrauding investors of more than $60 million. The scam, as described by prosecutors, was actually pretty simple. Hsu would lure investors in by delivering on small-time deals, gaining their trust. But when it came time for the big deals, he never actually invested the money as promised -- instead, he just used newer investors' money to repay older investors, and so on and so on. The classic Ponzi scheme.
Interestingly, the prosecutors say that Hsu's considerable fundraising skills (for Hillary Clinton and other Dems) were part of the fraud:
During the same time period, NORMAN HSU, the defendant, in an effort to raise his public profile and thereby convince more victims to invest in his fraudulent scheme, pressured victims into individually contributing tens of thousands of dollars to various candidates... he supported. HSU made implied threats to the victims leading them to believe that their failure to make the required political contributions would adversely affect the victimsâ ongoing investment relationship with HSU.
The complaint also alleges that Hsu reimbursed two people for $20,000 in political contributions, a crime.
The charges, two counts of fraud and one of violating campaign finance laws, amount to a maximum 45-year sentence if served consecutively. Hsu also faces a maximum fine of $120 million.